Business Facilities - January 2009 - (Page 18)

GRANTS: The Customized Training Office Program offers financial incentives for worker training; assists companies in becoming more competitive in the domestic and international markets; recommends skills training programs and customize them to provide maximum benefit to businesses; provides training grants for occupational safety and health training; and provides training grants for basic literacy skills, including English as a second language. NEW MEXICO HIGH-WAGE JOBS TAX CREDIT: Companies may take a credit equal to 10% of the combined value of salaries and benefits for each new job paying a minimum of $28,000 per year in areas with populations less than 40,000; companies located in larger areas must pay salaries of $40,000 to receive the credit. Qualified employers may take the credit for up to four years and any excess credit will be refunded to the business. The credit shall not exceed $12,000 per year, per job. The credit is applied against the businesses tax liability, including the state portion of gross receipts tax, compensating tax and withholding tax. MANUFACTURER’S INVESTMENT TAX CREDIT: Manufacturers may take a tax credit of 5% of the value of qualified equipment and other property used in their operation. The credit can be applied against compensating, gross receipts or withholding tax up to 85% of the total. Any remaining available credit may be claimed in subsequent reporting periods. In addition, the company must add one new job for each credit up to $30 million; one new employee must be hired for each $500,000 in equipment. NEW MARKETS TAX CREDIT: This is an investment tax credit which varies based on the cost of the project. For example: If a business invests $1,000,000 into a low-income area of New Mexico, the business can apply for a tax credit totaling $390,000 which would be disbursed over the course of seven years. The business must remain invested in the project for a minimum of seven years to earn the tax credit. RURAL JOBS TAX CREDIT: Eligible 18 JANUARY 2009 employers must be located in a rural area and be approved for the JTIP program. Employers receive a credit of 6.25% of the first $16,000 in wages. If the job is located in a Tier 1 community (more than 15,000 in population), the employer may take the credit for four consecutive years. Businesses located in a Tier 2 community (less than 15,000 in population) may take the credit for two consecutive years. If the amount of credit exceeds the businesses tax liability, the excess may be carried forward for up to three years. Rural New Mexico is defined as any part of the state other than Los Alamos, Albuquerque, Rio Rancho, Las Cruces and Santa Fe (and a 10 mile zone around municipalities.) TECHNOLOGY JOBS TAX CREDIT: Businesses may take a credit on research expenditures of 4% (8% in rural areas). Qualified expenditures may include land, buildings, equipment, computer software and upgrades, consultants, technical literature, test materials, patents, payroll, and labor. The credit may be taken against gross receipts tax, compensating tax or state payroll tax, and may be carried forward. An additional 4% may be applied against state income taxes if base payroll expenses will be increased by at least $75,000 per $1,000,000 of expenditures claimed. ANGEL INVESTMENT TAX CREDIT: A taxpayer who files a New Mexico income tax return and who is a qualified investor may take a tax credit of up to $25,000 (25% of a qualified investment of not more than $100,000). ments in production property and equipment may qualify for tax credits of up to 10% of their eligible investment. New businesses may elect to receive a refund of certain credits, and all unused credits can be carried forward for 15 years. BROWNFIELD CLEANUP: This new program provides tax credits to volunteers who remediate and redevelop brownfield sites in the state. Under the program, sites that are remediated and redeveloped anywhere in the state may qualify for tax credits. EMPIRE STATE FILM PRODUCTION CREDIT: Provides a credit against corporate franchise (income) tax and personal income tax for qualified film production companies, or sole proprietors of qualified film production companies. The credit would be the product of 10% of the qualified production costs paid or incurred in the production of a qualified film, provided that at least 75% of the production costs or shooting days are spent in the state. NORTH CAROLINA WORKFORCE DEVELOPMENT NETWORK: Programs administered through the North Carolina community college system include Focused Industrial Training, On-the-Job Training, and Incumbent Workforce Development. INDUSTRIAL/ROAD ACCESS PROGRAM: Administered by the Department of Transportation, this program provides funds for the construction of roads to provide access to new or expanded industrial facilities. Approval is based on the resulting economic benefits of the project, including the number of new jobs created, the amount of capital investment, highway use, and the area’s economic conditions. ARTICLE 3J TAX CREDITS: Article 3J provides tax credits for job creation and investments to eligible taxpayers that undertake qualifying activities in North Carolina. These credits may be combined to offset up to 50% of the taxpayer’s state income and franchise tax liability, and unused credits may be carried forward for up to five years. JOB DEVELOPMENT INVESTMENT GRANTS (JDIG): JDIG grants can consist of annual payments made over a period of up to 12 years. These performance-based grants funded NEW YORK EMPIRE ZONES: New York has designated 82 Empire Zones statewide. Businesses locating or expanding operations in Empire Zones receive significant tax credits enabling them to operate nearly tax free for up to 10 years, with declining savings available for years 11 through 15. POWER FOR JOBS provides 450 megawatts of low-cost electricity to businesses that remain and expand in the state. After a company fulfills the requirement to retain or create a specific number of jobs, it receives energy cost savings that range from 10% to 25%. INVESTMENT TAX CREDIT (ITC): Businesses that create new jobs and make new invest-

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Business Facilities - January 2009 Contents First Word Cover Story: State Incentives Guide Mexico Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Virginia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming No label Canada Alberta British Columbia Manitaba New Brunswick Nova Scotia Ontario Québec Saskatchewan Asia/Pacific International Caribbean Cental/South America Europe Advertiser Index

Business Facilities - January 2009

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